US releases $100 Million for Afghanistan through the New Development Partnership

The United States Government and the Ministry of Finance of Afghanistan signed a letter for the disbursement of $100 million to the National Unity Government (GNU) for reaching milestones under the New Development Partnership (NDP).

As part of the ongoing commitment by the U.S Government to improve the welfare of the Afghan people, the release of these funds is tied to the Afghan government’s achievement of specific development results and implementation of key policy reforms, including improved revenue collection, reducing corruption and reducing poverty by helping the poor and marginalized, especially women.

USAID concluded verification of the results and associated indicators under Tranche III of the NDP for mid-year 2016. USAID and the Ministry of Finance have agreed that the GNU is eligible to receive $100 million for achievements of result indicators of fundamental development reforms that will improve the welfare of the Afghan people.

“Linking U.S. assistance funding to achievable and important development results enables the Afghan government to implement its reform agenda, while increasing Afghan ownership and transitioning to a more Afghan-led development approach,” said William Hammink, Assistant Administrator, USAID/Office of Afghanistan and Pakistan Affairs.

“NDP is an effective mechanism that aligns U.S. assistance with the Afghan government’s reform agenda. As an on-budget funding modality, it has given the Afghan government the required fiscal space to implement its development priorities that will improve the lives of the Afghan people,” said the Minister of Finance, Eklil Hakimi.

The U.S. Agency for International Development will continue to work with the Ministry of Finance to help advance the Afghan government’s achievement of further milestones, each of which would trigger the release of additional funds. The New Development Partnership is anticipated to provide incentive funds of up to $800 million through 2018.